Which of the Following Statements Is True Regarding the Tax

question 48

Multiple Choice

Which of the following statements is true regarding the tax benefits from a loss corporation's carryovers that can be used by the successor corporation?

• A) The net present value of an NOL carryover must be computed using the Federal long-term tax-exempt rate for the discount rate.
• B) If the maximum allowable by the § 382 limitation cannot be used in the current year because there is not enough income earned by the successor corporation, the unused portion can be carried forward and added to the next years' limitations.
• C) None of the loss tax attributes will be available to the successor if an ownership or equity shift occurs within three years.
• D) The § 382 yearly limitation is applied first to the NOL and capital loss carryovers, then to built­in losses, and lastly to credit carryovers.
• E) None of the above statements is true.

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Definitions:

Intellectual Disability

A term for significant limitations in intellectual functioning and adaptive behavior, affecting everyday social and practical skills.

IQ Score

A numerical assessment derived from standardized tests designed to measure a person's intellectual abilities in comparison to the general population.

Moderate Intellectual Disability

A level of intellectual disability where individuals possess an IQ between 35-49, typically exhibiting limitations in conceptual, social, and practical adaptive skills.

Borderline Intellectual Development

A condition characterized by cognitive abilities that are significantly below average but not low enough to be classified as intellectual disability.